SBI, other banks more than double NRE deposit rates

State Bank of India (SBI), the country's largest lender, has revised upwards the non-resident external (NRE) term deposit rates by up to 574 basis points across all maturities, effective 1 January 2012.

SBI also raised the highest tenor for NRE term deposits from 5 years to 10 years in a bid to boost deposit growth.

Other banks, including Punjab National Bank and private sector Kotak Mahindra Bank, have also joined the rate hike on NRE deposits.

SBI raised the interest rates on fixed deposits by non-resident Indians of less than Rs1 crore with a maturity of one to two years to 9.25 per cent, as against 3.82 per cent earlier.

NRE term deposits above Rs1 crore and of the same maturity will, however, attract 9 per cent interest with effect from 1 January 2012, SBI said in a statement.

Term deposits between 2-3 years and 3-5 years tenure will also earn 9.25 per cent interest.